2. Overview- India
Economic :
Economy poised to achieve 8.9 per cent growth (3 years since has been
above the 8% mark)
Inflation down to 5 per cent
Foreign Exchange Reserves to cross 130 billion dollars
Services sector records 8.9 per cent growth
Consolidated fiscal deficit of Centre/States to fall by 7.9 % of GDP
Ref: www.worldbank.org
3. India – Key Cities
Business travel dominates outbound
travel stimulated by India's buoyant
economy;
Leisure travelers are now significant &
increasingly becoming sophisticated &
demanding.
Key Markets –
Mumbai (Bombay)
Delhi
Kolkata (Calcutta)
Chennai (Madras)
Bangalore
Hyderabad
Ahmedabad
Findings show that
Mumbai is the leading source of India's
outbound travelers with a market share
of around 33 per cent.
Delhi at 26 per cent
4. Potential
India is one of the fastest growing outbound travel markets in the world
the number of Indians travelling abroad in 2008-09 (April 1 to March 31) touched 10.8
million
Indian outbound travel to Asia Pacific destinations grew 20% last year and has
been growing 9.8% per year on average since 2001.
The Travel Business Partnership’s Editorial Director Ms. Nancy Cockerell recently
commented.
India reveals clear opportunities for market segmentation and niches, the market is
already showing signs of maturing
Creative Travel Director of Operations Mr. Rohit Kohli predicts that by 2008
Indians will spend more than US$4 billion on travel alone.
Singapore, incidentally, has emerged as the most- visited country for Indians
travelling abroad, followed by the UAE, UK and the US.
Another reason for the dramatic rise in the number of outbound Indian travellers
is the drop in airfares and hotel prices worldwide, which has made foreign
vacations cheaper
5. Potential
India’s middle class per capita income is increasing by around 7% a year,
and its per capita expenditure is rising twice as fast.
India's middle classes are moving into the 'cash rich/time poor'
bracket and are starting to demand improved quality on their trips.”
Holidaymaking has also been stimulated by more liberal exchange controls
and improved availability of credit
Foreign tourist offices have now simplified visa procedures for Indian
tourists.”
Australia, for example, has enjoyed 33% growth in Indian arrivals in the first
half of 2006 because of the launch of a programme in India that allows
preferred travel agents to recommend visa approvals.
6. Potential
Estimates now suggest that Asia Pacific and the Middle East attract more
than two thirds of total Indian outbound trips
But Indian travelers are increasingly looking beyond the established destinations now.
Cruising is emerging as a popular holiday option among Indians and
forecasts are that India will become the second largest market for cruises
after Australia.
In 1999, when Star Cruises entered the Indian market, it had 10,800 customers in
its first year.
The next big thing for Indian outbound travel is group tours say SOTC and Raj
Travel.
"The cost of travel services around the world dropped as a result of recession and
overseas tour operators passed on the benefits to Indian tourists, resulting in more
travellers visiting foreign destinations
7. Summary – Potential
The World Tourism Organization has predicted that by
2020 India will account for 50 million outbound tourists.
A number of countries, including Ireland, the Netherlands,
Spain, Poland and South Korea, have already opened
tourist offices in India to directly target Indians who want
to holiday abroad.
Dramatic rise in the number of Indian's travelling abroad
132 percent over 2006 to 2011.
8. Drivers for Outbound
Large flow of travelers fluent in English and comfortable with international travel
Growing economy and foreign investment
Air transport liberalization – more Indian airlines and more foreign carriers adding new
services or increasing frequencies
Increasing number of destination tourist boards setting up offices and expanding their
market representation in different cities
Increased investment by Indians living abroad
‘Look East’ policy – a desire to boost trade and travel relations with China (PRC) and North
and Southeast Asia
Growing number of multinationals investing in India, leading to more outbound travel for
conventions, incentives and business travel
The marketing impact of Bollywood movies shot abroad
Greater segmentation in the market – stronger demand for travel among families, young
people, women and seniors
Growing demand for niche travel products, such as honeymoon and cruises
9. Flight Situation
Privatization and modernization of Delhi, Mumbai and Bangalore airports.
Open sky policy begun between US and India and between Europe to India.
No frill airlines segment growing internationally with brands like Indi-Go and
Kingfisher Air.
Lufthansa restarted operations to Kolkata in 2007.
Intl Airline Operations increase to and from New Delhi
Fin Air started operations to Delhi on 1st November 2006.
Air China commenced operations into Delhi November 2006.
Private Indian Carriers airlines now fly to China, Singapore, Malaysia, U.K. and USA
Air India non stop to USA
10. Spending Capability
India’s increasingly affluent middle class already numbers 300 million and is growing rapidly.
High-end luxury remains a relatively small segment of the leisure market but is bound to
grow in proportion to the growing number of US$ millionaires in the country
now numbering about 1.5 million
The Travel Business Partnership’s Editorial Director Ms. Nancy Cockerell comments.
“The average Indian visitor in Singapore, for example, spends US$1,500 over five to
seven days,” she said.
Middle class - Earning Capacity – 15 to 20 thousand USD annual income
Nouveau Riche and - Earning Capacity – 20 to 50 thousand USD annual income
Elite - Earning Capacity – Not accounted for
“This makes the Indian leisure traveler a highly valuable proposition.”
11. The Indian Traveller
What do they look for
Travel Patterns
Destination Choices
Buying Habits
12. What do they look for
Indian Food at hotels and choice of vegetarian if possible besides world cuisines ( most
Indian's also enjoy Chinese , Thai and Italian food)
Yet some Indians have specific needs (e.g. dietary) when traveling because of their social/religious
background
Big spenders ..but always want quality competitive prices – looking for deals always ( not
necessarily cheap )
Sticklers for detail and service quality …as Indian culture is highly service oriented and service
levels in India hotels are very high and personalized …
eg – Bell boys taking bags….Service with a genuine smile …Equal respect for all races
Attitude towards travel: Status is important…..There is prestige attached to going somewhere
off the beaten track…
destinations such as Koh Samui or Chiang Mai are becoming popular.
Other city delights similar to global leisure - Shopping , night life , spa etc
The Indian market is highly complex and consists of many segments (region, religion, caste,
language, etc.)
13. Seasonality (Leisure FIT)
Summer ( School Holidays)
Take the kids to HK, Singapore , Malaysia, Middle East
Winter ( Sept- April )
Lazy Vacation in Europe
Shopping mania
Defined by market but mainly visits to Thailand, Singapore and Dubai
14. Seasonality (Corporate MICE)
Winter ( Sept- April )
High budget destinations
Summer
Mid to low budget destinations
Also governed by …
Flight to Singapore and Thailand today cheaper or equal to flight cost to
Kerela or Goa from Delhi or Calcutta
15. Popular Destinations
Outbound tourism Markets with strength and new emerging
destinations from India markets
by market share
1. Middle East 8. %* Singapore
2. Singapore 8.1% Malaysia
3. Dubai 5.8% Australia
4. USA 5.5%
Thailand
5. Thailand 4.7%
HK
6. United Kingdom 4.6%
Middle East ( Mainly Dubai and Abu Dhabi now)
7. China .2%
8. Hong Kong .2% Europe (UK, Germany and France ) more group tours
9. Malaysia .0% China (more SME travel for business )
10. France 2.7% USA (more work related with a short vacation)
11. Italy 2.2%
12. Switzerland 1.7%
1 . South Korea 1.0%
14. Australia1.0%
16. Buying Habits
– Middle class books via
– Package tours if taking a group tour …
– for individual holiday ..
– Best deal - open to changing dates …plans in advance
– Either - Internet research for hotel and Travel agents for flight tickets
– OR - TA rates on hotel and flight
– Takes a holiday once a year
– Small Spenders – More shopping ..Thailand / Singapore / Dubai /
Malaysia /Sri Lanka
– 3 star to 5 star …
17. Buying Habits
– Nouveau Riche books via
– Travel agent
– Internet
– Travel deals direct to hotel
– Airline Promos with hotel
– Is intelligent - Looks for “DEALS” ..open to changing dates …plans in advance …is
mostly salaried or new age businessman
– Take regular holidays in India and abroad
– This segment is from Service Industry - Software , IT , BPO , Financial services etc
– Medium to Big Spenders – Like to shop and also like luxury ….short vacations 3 to
7 nights ….Hong Kong / Thailand / Dubai / Europe
– Three star to 5 star
18. Buying Habits
– Elite
– Travel Agent full itinerary
– Were always traveling in the summer to Europe /USA for holidays
– Go for spa vacations etc
– Now being recognized
– Medium to Big Spenders
– Like to shop and also like luxury ….short and long vacations
– 3 to 20 nights ….Hong Kong / Singapore / Thailand / Dubai /
Europe /USA ……
– Five Star luxury
19. Key Players- Sellers
– Key Players
Tour Operators - Event Companies
– SOTC - Showbiz
– Raj Travels - Wizcraft
– Kuoni
– C&K - Showtime
– Thomas Cook - Fountainhead
Conference Organizers - Corporate Implants
– KW Conferences - Amex
– Rams - Carlson Wagonlit
- Kuoni
- Thomas Cook
- Cox and Kings
Over 3000 travel agents book international
guests for holidays outside India
20. Emerging Players
– Tour Operators
– Liberty Intl
– Smaller agents all over the country using Internet + flight tickets to self
package or
– Affiliated to large outbound package consolidators
– Niche agents also cropping up with specialties like catering to
Markets specific – Australia Vacations,
Type of business specific – Celebs - Bollywood stars ,
Holidays specific - Spa’s and alternative healing
– Inbound agents also moving in the last 2 years to open out bound division
21. India MICE
– Similar to any other in the world
– Number is growing fast
Wipro -TCS -Exl
Expeditors -Raymond -Kuene and Nagal
- Fed Ex -Infosys - World Bank
- Britannia -Nestle - Castrol
The list goes on ……………….. At least 250 plus companies have a yearly event
internationally
– WHY
Corporate India is growing internationally
Other reasons are …airfares are similar ( besides low cost airlines ) a Del - Goa and
Del-Dubai costs almost the same
Hotel cost Thailand or Kerela at similar prices
International excitement – Stamp on passport ….. Better motivator for not much
of a financial difference
22. MICE Channels Used
– Incentives / Meetings /Conferences
– Empanel - Travel agent or RFP bid
– Implants
– Secretaries Direct - Hotel Direct
– Administration Managers
– DMC
– Event Companies
– Conference Organizers
23. How do we get them ?
Marketing
Focus efforts on high yielding market segments in priority regions
Ensure all activity is clearly linked to specific wholesale or airline calls to action.
Work with Tourism Board to maximize the benefit to hotel , city and country
Create additional opportunities through development of unique promotional activities
ie. Bollywood, Cricket
Eg - Bollywood film shoots
20 - 20 yearly Cricket Cup at HK
Raise awareness of destination and experiences for potential consumers…
Eg Lord of the Rings promotion with HBO
Work with India Sales Representation to increase the cooperative marketing activities
24. How do we get them ?
Digital Marketing
Increase Potential Guest traffic to websites with strong Indian flavored content
Work with wholesalers and airline partners to increase the distribution of product in
online distribution channels
Create India specific Online marketing strategy for PPC on
Google India ,Yahoo India , Indya.com , IndiaTimes.com etc
Work with Intl banks Indian branches – Citibank , Standard Chartered and American
Express ..online offers and offline promos with special deals on cards
Work on India Social networking sites
25. How do we get them ?
Media & Public Relations
Significantly increase targeted PR activity to drive greater potential guest and
trade media awareness of destinations and hotel experience
Work with Tourism department to maximize the benefits from the country
Visiting Journalists Program
Increase the number of targeted media famil’s to support existing product
and experiences and introduce new experiences and products
Increase the exposure of your property through participation and promotion
of events in India and/or in your city with the local Indian community …most
countries have a India Club
eg. A cricket Match
26. How do we get them ?
Trade Marketing
Maintain focus on trade relationships in Mumbai and Delhi while developing additional
relationships with trade based in Chennai, Ahmedabad, Hyderabad and Bangalore
Develop packaged product in key wholesaler programs through increased engagement with
stakeholders like airlines , hotel and maybe tourism board
Engage with local Tour Operator's who handle India market and Implement a trade
familiarization program
Implement cooperative marketing campaigns with partners, particularly Regional Tourism
Organizations and DMC’s
Undertake a series of missions in India market
27. Self Reference Points for India ?
http://www.travtalkindia.com/index.htm
Trav Talk – India’s most widely read Trade magazine
http://www.fhrai.com
Federation of Restaurant and Hotel Association of India
http://www.travelagentsofindia.com/news.htm
TAAI - Travel Agents Association of India
28. LiveBean Hospitality
Wisma GKBI, 39th Floor, Jl. Jend Sudirman No 28,
Jakarta, 10210, Indonesia
T +62 (21) 5799 8111 F +62 (21) 5799 8080
E contact@livebeanhospitality.com
Visit us @ www.livebeanhospitality.com
With Offices in Malaysia, India, Singapore & Indonesia
NAMASTE